Economy

Nigeria Not in Debt Crisis at the Moment—DMO

Published

7 years ago

12/10/2018

By Modupe Gbadeyanka

Director-General of Nigeria’s Debt Management Office (DMO), Ms Patience Oniha, has allayed fears of some observers that the country was already in a debt crisis.

However, the debt office boss admitted that the nation was not generating enough revenue to fund some critical operations, but stressed that Nigeria was still capable of servicing her debts.

Ms Oniha, in a chat with newsmen on the sidelines of the International Monetary Fund and World Bank Group summit in Indonesia, noted that efforts were being done to avert a debt crisis in the Africa’s largest economy.

This, she said, federal government was doing by shoring up the revenue base by diversifying the economy.

“Debt crisis means you are no longer able to service your debts, which is what we are talking about. We can’t stop talking about it, the figures are there.

“I agree that we are not generating as much revenue as we should, but we are not in a debt crisis as many have feared,” Ms Oniha told journalists.

She said further that, “When you compare your revenue to your Gross Domestic Product (GDP), it is low and we cannot run from the fact that we need to generate more revenue.”

“Generating more revenue does not mean we should focus only on increasing production in the Niger Delta or praying for oil prices to rise, we have to generate long-term revenue. How do you generate that?

“You have to enforce compliance, which is all about increasing the tax base and making sure that those who are paying are paying the correct amount and not just paying a small amount to escape. The option that was talked about here about raising taxes,” she added.

Business Post recalls that earlier this month, analysts at FSDH Research had called on government to avert an imminent debt crisis in the country.

The firm had said in its report that the growth in Nigeria’s debt was higher than the growth in revenue, pointing out that Nigeria has the lowest government revenue to Gross Domestic Product (GDP) ratio at 6 percent among some selected countries.

According to the company, Nigeria’s over-dependency on crude oil revenue, combined with volatility in both the price and production of crude oil are the major reasons for sluggish growth in government revenue.

It said growing non-oil revenue will require that the Nigerian economic environment has inherent structures that can support business growth, noting that such structures include adequate physical infrastructure, policies, legal and regulatory frameworks that will make the economy business-friendly to generate taxable profits.

“Our analysis of the ratio of the interest payment on domestic debt relative to the FGN allocation from the Federal Account Allocation Committee (FAAC) shows that the FGN is spending too much of its revenue to pay interest on loans.

“This leaves the government with little resources to spend on critical sectors of the economy that could support strong growth and maintain a healthy economy to generate revenue,” it said.

FSDH Research said further that, “The current high interest payment relative to revenue may also increase the credit risk of the country. Although the government has been able to meet its debt obligations (interest and principal payments) so far, if the current situation is not addressed, the interest rate on government loans may increase because of the perceived elevated risk. This would also lead to higher interest rates for private sector operators.”

The firm disclosed that the external environment was becoming tighter than before because of the rising interest rate in the US.

Economy

PEBEC Blocks Introduction of New Policies by MDAs

Published

1 hour ago

07/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The Presidential Enabling Business Environment Council (PEBEC) has directed Ministries, Departments, and Agencies (MDAs) to suspend the introduction of new policies and regulatory changes to prevent disruptions to businesses.

The directive was issued in a statement by PEBEC director-general, Mrs Zahrah Mustapha-Audu, on Monday in Abuja, noting that the move is part of the Federal Government’s broader effort to improve regulatory quality, ensure policy consistency, and strengthen Nigeria’s ease of doing business environment.

The council emphasised that the suspension will remain in place until all MDAs fully comply with the Regulatory Impact Analysis (RIA) Framework, which governs evidence-based policymaking across government institutions.

The council said the directive is aimed at ensuring that all government policies are backed by verifiable data and do not negatively impact businesses or investors.

“It is imperative to emphasise that no new reform or policy will be permitted to proceed without being grounded in clear, verifiable evidence,” said Mrs Mustapha-Audu.

“The framework provides the structured mechanism through which such evidence-based decisions can be rigorously developed, assessed, and validated.

“This directive is necessary to prevent policy shocks that may adversely affect businesses, investors, and citizens, as well as to eliminate policy inconsistencies and frequent reversals.”

She added that the government remains committed to working collaboratively with regulators and does not intend to embarrass any institution.

The Regulatory Impact Analysis (RIA) Framework, introduced in January 2025, is designed to improve transparency and ensure that policies undergo proper evaluation before implementation.

All MDAs are required to align new policies and amendments with the RIA framework before approval and rollout.

The framework has been circulated by the Office of the Secretary to the Government of the Federation (SGF) and is available on the PEBEC website.
MDAs are encouraged to seek technical support from the PEBEC Secretariat to ensure proper implementation.

Exceptions to the directive will only be granted in cases of urgent national interest, subject to appropriate approvals.

PEBEC noted that the framework will help institutionalise evidence-based policymaking, enhance transparency, and improve stakeholder confidence in government decisions.

Economy

DMO Sells 3-Year FGN Savings Bond at 14.082% for April Batch

Published

2 hours ago

07/04/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

Subscription for the Federal Government of Nigeria (FGN) savings bonds for April 2026 has opened, a circular from the Debt Management Office (DMO) on Tuesday, April 7, 2026, confirmed.

The debt office is selling the retail debt instrument for this month in two tenors of two years and three years.

Offer for the savings bonds opened today and will close on Friday, April 10, 2026, a part of the disclosure stated.

The 2-year FGN savings bond due April 15, 2028, is being sold at a coupon rate of 13.082 per cent per annum, while the 3-year FGN savings bond due April 15, 2029, is being sold at a coupon rate of 14.082 per cent per annum.

The interests are paid every quarter, and the bullet repayment to subscribers on the maturity date.

The bonds are sold at N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

Interested investors are required to reach out to the stockbroking firms appointed as distribution agents by the DMO via the agency’s website.

An FGN savings bond qualifies as securities in which trustees can invest under the Trustee Investment Act. It also qualifies as government securities within the meaning of the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA) for tax exemption for pension funds, amongst other investors, meaning it is tax-free.

It can be used as a liquid asset for liquidity ratio calculation for banks, and is listed on the Nigerian Exchange (NGX) Limited to allow for easy exit (liquidation) before maturity by selling at the secondary market.

Economy

Oil Prices Rise as US-Iran Tensions Escalate Despite Talks

Published

5 hours ago

07/04/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil prices climbed on Monday’s short trade as the United States and Iran threatened more attacks, as the two countries are engaging in indirect talks that could lead to the de-escalation of hostilities.

Brent crude futures settled at $109.77 ‌a barrel after chalking up 74 cents or 0.68 per cent, while the US West Texas Intermediate (WTI) crude futures traded at $112.40 after growing by 87 cents or 0.78 per cent.

The US and Iran received a framework from Pakistan to end hostilities, but this was rejected by Iran, especially the idea of immediately reopening the strait after President Donald Trump threatened to ⁠rain “hell” on the nation if it did not make a deal by the end of Tuesday.

Iran said it had formulated its positions and demands in response to recent ceasefire proposals conveyed via intermediaries.

The US is eyeing an agreement to open the crucial Strait of Hormuz, the shipping artery used by one-fifth of the world’s oil and gas supply, but the strait, which carries oil and petroleum products from Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates, remains largely closed due to Iranian attacks on shipping after the U.S.-Israel attacks began on February 28.

Some vessels, however, including an Omani-operated tanker, a French-owned container ship and a Japanese-owned gas carrier, have passed through the strait since Thursday.

Meanwhile, major oil consumers, particularly in Asia, are conserving barrels or cutting consumption in response to the closure of the strait.

The Middle East supply disruptions have led refiners to seek alternative sources for crude, particularly for physical cargoes in the US and Britain’s North Sea.

Indian refiners have also postponed maintenance shutdowns of their units to meet local fuel demand.

On Sunday, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed to a modest rise of 206,000 barrels per day for May. However, this will only appear on paper as the disruption is limiting the ability of the top producers to add the needed output.

OPEC’s combined oil output losses for March were estimated at 7.2 million barrels daily. The biggest production cuts were made by Kuwait, Iraq, the United Arab Emirates, and Saudi Arabia, for a total OPEC output of 21.57 million barrels daily for March. This is the lowest OPEC production rate since June 2020.